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Obama administration does not plan to seek additional resources for the IMF

Wednesday, April 18, 2012 4:02 AM GMT

Good Morning,

- No further followth rough on the FX risk side, besides the squeeze higher in USDJPY and EURJPY (81.43 + 106.89), on the strong stock markets. AUDUSD for example traded in Asia in a 1.0389-1.0416 or EURUSD 1.3109-1.3142 range. Interesting cross-border M&A flow was also announced/talked about overnight - see bottom of mail.

- Stocks: Nikkei +1.98 %, Hang Seng +1.22 %, Shanghai Composite +1.52 %, Dow Jones +1.50 %, S+P500 +1.55 %

- Spanish banks will make additional provisions of 29.1 billion euros, as well as creating a capital buffer of 15.6 billion euros, the Bank of Spain. They have already made a clean-up effort amounting to 9.19 billion euros at the end of 2011, the Bank of Spain said. The total compares with the government's initial estimate that banks would need to take charges of about 52 billion euros to meet new rules passed in February. Most of the provisions required have been taken or will be made without difficulty, the bank said in an e-mailed statement.

- Lael Brainard, the U.S. Treasury Department's undersecretary for international affairs, reiterated that the Obama administration does not plan to seek additional resources for the International Monetary Fund. She spoke after the IMF won pledges of fresh cash from Japan/Sweden/Norway/Denmark.

- European Central Bank governing council member Carlos Costa said that euro bonds are not an immediate solution to the region's debt crisis.

- European Central Bank Vice President Vitor Constancio said policy makers are confident that the Spanish government will fulfill the fiscal commitments it has agreed on.

- Egan Jones cuts Spain to BBB- from BBB

- Bank of Japan Deputy Governor Kiyohiko Nishimura said the central bank is ready to implement additional easing if necessary, fueling speculation that further loosening is likely this month.

- BOJ: The central bank is considering an increase to its forecasts for fiscal 2012 and 2013 to reflect rising crude oil prices and post-quake construction demand, Nikkei newspaper reports, citing people familiar with the bank's thinking.

* May raise 2012 forecast for CPI ex-food to 0%-0.5% from 0.1% Jan. forecast; 2013 to 0.5%-1.0% from 0.5%: Nikkei
* New forecast to be released April 27: Nikkei

- The Swiss government may appoint Thomas Jordan as president of the central bank as soon as today, filling the post left vacant by Philipp Hildebrand. The government plans to discuss the appointment at its weekly meeting, which begins at 9:00 a.m. in Bern. Jordan will be named as head of the Swiss National Bank at the meeting, NZZ am Sonntag reported on April 15. Swiss President Eveline Widmer- Schlumpf said last month that Jordan is "clearly a leading candidate" for the SNB's top job.

- China's achievement of greater balance in trade flows is masking a deepening imbalance in the domestic economy, according to International Monetary Fund staff. "Evidence increasingly points to a rising domestic imbalance as growth becomes increasingly dependent on very high levels of investment," IMF staff wrote in a working paper. The institution yesterday cut its estimate for China's current-account surplus, the broadest measure of trade, to 4 percent to 4.5 percent of gross domestic product over the "medium term," from around 7.5 percent estimated in a July report.

- China's March home prices fell in a record 37 of 70 cities tracked by the government in March as officials pledged to keep restrictions on property purchases that have sapped buyer demand. The eastern city of Wenzhou led declines with a 9 percent slump in values from a year earlier, while Beijing and Shanghai recorded drops of 0.8 percent, according to data released by the statistics bureau today.

- The International Monetary Fund's forecasts for Australian economic growth are "broadly consistent" with government projections that underpin its plan to return the budget to surplus, Treasurer Wayne Swan said. Australia's economic expansion will accelerate to 3 percent this year and 3.5 percent in 2013, the Washington-based IMF said in its World Economic Outlook. Unemployment will remain at the current 5.2 percent this year and next, the report showed.

- M&A : Pfizer Inc. may select a buyer for its infant-nutrition unit as soon as next week after receiving bids from Nestle SA and Danone SA, according to people with knowledge of the matter. Nestle and Danone each submitted final offers of about $10 billion for the business, said the people, who declined to be identified because the discussions are private. Other consumer companies and private-equity firms are also involved in the auction because they may alleviate the antitrust risk for the bidders, one person said yesterday.

- 13.00 US MBA Mortgage Applications
- 10.00 Eurozone Current Account Feb
- 11.00 Eurozone Construction Output Feb
- n/a Spain House Price Index Q1
- n/a Spain Trade Balance Feb
- 13.00 ECB Gonazlez-Paramo
- 10.30 Bank of England Minutes
- 10.30 UK Claimant Count Rate Mar
- 10.30 UK Jobless Claims Mar
- 10.30 UK ILO Unemployment Rate Feb
- 11.00 Switzerland ZEW Apr
- 09.30 Sweden Riksbank Rate Announcement - close call no change/25 bps cut
- 16.30 Bank of Canada Monetary Policy Report
(CET)

Have a nice day !

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